How to assess the susceptibility of a U.S. company to go bankrupt?












3












$begingroup$


Suppose a NASDAQ equity XYZ.



Question :




  • How can we assess the susceptibility of a company to go bankrupt? Are there good criteria that we can trust? What about the Buffett indicator?


  • How to evaluate the viability of a company on the stock market?







nasdaq







share|improve this question











$endgroup$








  • 1




    $begingroup$
    en.wikipedia.org/wiki/Ohlson_o-score
    $endgroup$
    – Alex C
    7 hours ago






  • 1




    $begingroup$
    Forecasting Bankruptcy More Accurately: A Simple Hazard Model: pdf: www-personal.umich.edu/~shumway/papers.dir/forcbank.pdf
    $endgroup$
    – Emma
    7 hours ago
















3












$begingroup$


Suppose a NASDAQ equity XYZ.



Question :




  • How can we assess the susceptibility of a company to go bankrupt? Are there good criteria that we can trust? What about the Buffett indicator?


  • How to evaluate the viability of a company on the stock market?







nasdaq







share|improve this question











$endgroup$








  • 1




    $begingroup$
    en.wikipedia.org/wiki/Ohlson_o-score
    $endgroup$
    – Alex C
    7 hours ago






  • 1




    $begingroup$
    Forecasting Bankruptcy More Accurately: A Simple Hazard Model: pdf: www-personal.umich.edu/~shumway/papers.dir/forcbank.pdf
    $endgroup$
    – Emma
    7 hours ago














3












3








3


1



$begingroup$


Suppose a NASDAQ equity XYZ.



Question :




  • How can we assess the susceptibility of a company to go bankrupt? Are there good criteria that we can trust? What about the Buffett indicator?


  • How to evaluate the viability of a company on the stock market?







nasdaq







share|improve this question











$endgroup$




Suppose a NASDAQ equity XYZ.



Question :




  • How can we assess the susceptibility of a company to go bankrupt? Are there good criteria that we can trust? What about the Buffett indicator?


  • How to evaluate the viability of a company on the stock market?







nasdaq




nasdaq






share|improve this question















share|improve this question













share|improve this question




share|improve this question








edited 7 hours ago









Emma

2048




2048










asked 8 hours ago









fgauthfgauth

456




456








  • 1




    $begingroup$
    en.wikipedia.org/wiki/Ohlson_o-score
    $endgroup$
    – Alex C
    7 hours ago






  • 1




    $begingroup$
    Forecasting Bankruptcy More Accurately: A Simple Hazard Model: pdf: www-personal.umich.edu/~shumway/papers.dir/forcbank.pdf
    $endgroup$
    – Emma
    7 hours ago














  • 1




    $begingroup$
    en.wikipedia.org/wiki/Ohlson_o-score
    $endgroup$
    – Alex C
    7 hours ago






  • 1




    $begingroup$
    Forecasting Bankruptcy More Accurately: A Simple Hazard Model: pdf: www-personal.umich.edu/~shumway/papers.dir/forcbank.pdf
    $endgroup$
    – Emma
    7 hours ago








1




1




$begingroup$
en.wikipedia.org/wiki/Ohlson_o-score
$endgroup$
– Alex C
7 hours ago




$begingroup$
en.wikipedia.org/wiki/Ohlson_o-score
$endgroup$
– Alex C
7 hours ago




1




1




$begingroup$
Forecasting Bankruptcy More Accurately: A Simple Hazard Model: pdf: www-personal.umich.edu/~shumway/papers.dir/forcbank.pdf
$endgroup$
– Emma
7 hours ago




$begingroup$
Forecasting Bankruptcy More Accurately: A Simple Hazard Model: pdf: www-personal.umich.edu/~shumway/papers.dir/forcbank.pdf
$endgroup$
– Emma
7 hours ago










2 Answers
2






active

oldest

votes


















5












$begingroup$

Since the stock is listed on NASDAQ, you have access to fairly standard 10Q and 10K financial statements. So you can apply the analysis pioneered by Ed Altman in his Z-score paper - compare this company's fundamental ratios with those of other companies, and see how many of them went bankrupt historically. For example, Moody's KMV uses this approach to estimate "EDF" (expected default frequency) for many corporate credits.






share|improve this answer









$endgroup$





















    3












    $begingroup$

    I have been told:



    Bankruptcy is so very controversial.



    You might track companies ratios (e.g., debt to equity ratio, EPS, net income, etc.). For instance, GE looks almost bankrupt. But, its not and there is a very low probability that GE would file for any bankruptcy chapter, I'm just guessing.



    There are many companies, especially in OTC markets, that many investors consider them "bankrupt", but "they are not" and their equities are being traded, e.g. OTCMKTS: HMNY. Usually, theses companies are destined to takeover, involuntary M&As, and so.



    Also, there are types of bankruptcies that you might take into account, not to mention the complexity of U.S. bankruptcy courts. Majority of good companies are incorporated in Delaware, which has a fairly advanced court to protect shareholders (e.g., Delaware Court of Chancery).



    Pharmaceutical sector might be good to look into. You can use stock screener tools to filter and find companies that are in serious financial situations. In fact, many small-account retail traders love to trade their equities since they are usually oversold.




    My favorites screeners are:



    Finviz



    TradingView



    Also, you can collect data from so many analyst websites. Such as:



    Zacks.com



    Barrons



    Seeking Alpha



    Thomson



    GE Finviz



    GE on Finviz






    share|improve this answer










    New contributor




    Emma is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
    Check out our Code of Conduct.






    $endgroup$









    • 1




      $begingroup$
      Can we discuss privately? Where have you got the photo from your answer?
      $endgroup$
      – fgauth
      7 hours ago













    Your Answer





    StackExchange.ifUsing("editor", function () {
    return StackExchange.using("mathjaxEditing", function () {
    StackExchange.MarkdownEditor.creationCallbacks.add(function (editor, postfix) {
    StackExchange.mathjaxEditing.prepareWmdForMathJax(editor, postfix, [["$", "$"], ["\\(","\\)"]]);
    });
    });
    }, "mathjax-editing");

    StackExchange.ready(function() {
    var channelOptions = {
    tags: "".split(" "),
    id: "204"
    };
    initTagRenderer("".split(" "), "".split(" "), channelOptions);

    StackExchange.using("externalEditor", function() {
    // Have to fire editor after snippets, if snippets enabled
    if (StackExchange.settings.snippets.snippetsEnabled) {
    StackExchange.using("snippets", function() {
    createEditor();
    });
    }
    else {
    createEditor();
    }
    });

    function createEditor() {
    StackExchange.prepareEditor({
    heartbeatType: 'answer',
    autoActivateHeartbeat: false,
    convertImagesToLinks: false,
    noModals: true,
    showLowRepImageUploadWarning: true,
    reputationToPostImages: null,
    bindNavPrevention: true,
    postfix: "",
    imageUploader: {
    brandingHtml: "Powered by u003ca class="icon-imgur-white" href="https://imgur.com/"u003eu003c/au003e",
    contentPolicyHtml: "User contributions licensed under u003ca href="https://creativecommons.org/licenses/by-sa/3.0/"u003ecc by-sa 3.0 with attribution requiredu003c/au003e u003ca href="https://stackoverflow.com/legal/content-policy"u003e(content policy)u003c/au003e",
    allowUrls: true
    },
    noCode: true, onDemand: true,
    discardSelector: ".discard-answer"
    ,immediatelyShowMarkdownHelp:true
    });


    }
    });














    draft saved

    draft discarded


















    StackExchange.ready(
    function () {
    StackExchange.openid.initPostLogin('.new-post-login', 'https%3a%2f%2fquant.stackexchange.com%2fquestions%2f44146%2fhow-to-assess-the-susceptibility-of-a-u-s-company-to-go-bankrupt%23new-answer', 'question_page');
    }
    );

    Post as a guest















    Required, but never shown

























    2 Answers
    2






    active

    oldest

    votes








    2 Answers
    2






    active

    oldest

    votes









    active

    oldest

    votes






    active

    oldest

    votes









    5












    $begingroup$

    Since the stock is listed on NASDAQ, you have access to fairly standard 10Q and 10K financial statements. So you can apply the analysis pioneered by Ed Altman in his Z-score paper - compare this company's fundamental ratios with those of other companies, and see how many of them went bankrupt historically. For example, Moody's KMV uses this approach to estimate "EDF" (expected default frequency) for many corporate credits.






    share|improve this answer









    $endgroup$


















      5












      $begingroup$

      Since the stock is listed on NASDAQ, you have access to fairly standard 10Q and 10K financial statements. So you can apply the analysis pioneered by Ed Altman in his Z-score paper - compare this company's fundamental ratios with those of other companies, and see how many of them went bankrupt historically. For example, Moody's KMV uses this approach to estimate "EDF" (expected default frequency) for many corporate credits.






      share|improve this answer









      $endgroup$
















        5












        5








        5





        $begingroup$

        Since the stock is listed on NASDAQ, you have access to fairly standard 10Q and 10K financial statements. So you can apply the analysis pioneered by Ed Altman in his Z-score paper - compare this company's fundamental ratios with those of other companies, and see how many of them went bankrupt historically. For example, Moody's KMV uses this approach to estimate "EDF" (expected default frequency) for many corporate credits.






        share|improve this answer









        $endgroup$



        Since the stock is listed on NASDAQ, you have access to fairly standard 10Q and 10K financial statements. So you can apply the analysis pioneered by Ed Altman in his Z-score paper - compare this company's fundamental ratios with those of other companies, and see how many of them went bankrupt historically. For example, Moody's KMV uses this approach to estimate "EDF" (expected default frequency) for many corporate credits.







        share|improve this answer












        share|improve this answer



        share|improve this answer










        answered 7 hours ago









        Dimitri VulisDimitri Vulis

        1958




        1958























            3












            $begingroup$

            I have been told:



            Bankruptcy is so very controversial.



            You might track companies ratios (e.g., debt to equity ratio, EPS, net income, etc.). For instance, GE looks almost bankrupt. But, its not and there is a very low probability that GE would file for any bankruptcy chapter, I'm just guessing.



            There are many companies, especially in OTC markets, that many investors consider them "bankrupt", but "they are not" and their equities are being traded, e.g. OTCMKTS: HMNY. Usually, theses companies are destined to takeover, involuntary M&As, and so.



            Also, there are types of bankruptcies that you might take into account, not to mention the complexity of U.S. bankruptcy courts. Majority of good companies are incorporated in Delaware, which has a fairly advanced court to protect shareholders (e.g., Delaware Court of Chancery).



            Pharmaceutical sector might be good to look into. You can use stock screener tools to filter and find companies that are in serious financial situations. In fact, many small-account retail traders love to trade their equities since they are usually oversold.




            My favorites screeners are:



            Finviz



            TradingView



            Also, you can collect data from so many analyst websites. Such as:



            Zacks.com



            Barrons



            Seeking Alpha



            Thomson



            GE Finviz



            GE on Finviz






            share|improve this answer










            New contributor




            Emma is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
            Check out our Code of Conduct.






            $endgroup$









            • 1




              $begingroup$
              Can we discuss privately? Where have you got the photo from your answer?
              $endgroup$
              – fgauth
              7 hours ago


















            3












            $begingroup$

            I have been told:



            Bankruptcy is so very controversial.



            You might track companies ratios (e.g., debt to equity ratio, EPS, net income, etc.). For instance, GE looks almost bankrupt. But, its not and there is a very low probability that GE would file for any bankruptcy chapter, I'm just guessing.



            There are many companies, especially in OTC markets, that many investors consider them "bankrupt", but "they are not" and their equities are being traded, e.g. OTCMKTS: HMNY. Usually, theses companies are destined to takeover, involuntary M&As, and so.



            Also, there are types of bankruptcies that you might take into account, not to mention the complexity of U.S. bankruptcy courts. Majority of good companies are incorporated in Delaware, which has a fairly advanced court to protect shareholders (e.g., Delaware Court of Chancery).



            Pharmaceutical sector might be good to look into. You can use stock screener tools to filter and find companies that are in serious financial situations. In fact, many small-account retail traders love to trade their equities since they are usually oversold.




            My favorites screeners are:



            Finviz



            TradingView



            Also, you can collect data from so many analyst websites. Such as:



            Zacks.com



            Barrons



            Seeking Alpha



            Thomson



            GE Finviz



            GE on Finviz






            share|improve this answer










            New contributor




            Emma is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
            Check out our Code of Conduct.






            $endgroup$









            • 1




              $begingroup$
              Can we discuss privately? Where have you got the photo from your answer?
              $endgroup$
              – fgauth
              7 hours ago
















            3












            3








            3





            $begingroup$

            I have been told:



            Bankruptcy is so very controversial.



            You might track companies ratios (e.g., debt to equity ratio, EPS, net income, etc.). For instance, GE looks almost bankrupt. But, its not and there is a very low probability that GE would file for any bankruptcy chapter, I'm just guessing.



            There are many companies, especially in OTC markets, that many investors consider them "bankrupt", but "they are not" and their equities are being traded, e.g. OTCMKTS: HMNY. Usually, theses companies are destined to takeover, involuntary M&As, and so.



            Also, there are types of bankruptcies that you might take into account, not to mention the complexity of U.S. bankruptcy courts. Majority of good companies are incorporated in Delaware, which has a fairly advanced court to protect shareholders (e.g., Delaware Court of Chancery).



            Pharmaceutical sector might be good to look into. You can use stock screener tools to filter and find companies that are in serious financial situations. In fact, many small-account retail traders love to trade their equities since they are usually oversold.




            My favorites screeners are:



            Finviz



            TradingView



            Also, you can collect data from so many analyst websites. Such as:



            Zacks.com



            Barrons



            Seeking Alpha



            Thomson



            GE Finviz



            GE on Finviz






            share|improve this answer










            New contributor




            Emma is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
            Check out our Code of Conduct.






            $endgroup$



            I have been told:



            Bankruptcy is so very controversial.



            You might track companies ratios (e.g., debt to equity ratio, EPS, net income, etc.). For instance, GE looks almost bankrupt. But, its not and there is a very low probability that GE would file for any bankruptcy chapter, I'm just guessing.



            There are many companies, especially in OTC markets, that many investors consider them "bankrupt", but "they are not" and their equities are being traded, e.g. OTCMKTS: HMNY. Usually, theses companies are destined to takeover, involuntary M&As, and so.



            Also, there are types of bankruptcies that you might take into account, not to mention the complexity of U.S. bankruptcy courts. Majority of good companies are incorporated in Delaware, which has a fairly advanced court to protect shareholders (e.g., Delaware Court of Chancery).



            Pharmaceutical sector might be good to look into. You can use stock screener tools to filter and find companies that are in serious financial situations. In fact, many small-account retail traders love to trade their equities since they are usually oversold.




            My favorites screeners are:



            Finviz



            TradingView



            Also, you can collect data from so many analyst websites. Such as:



            Zacks.com



            Barrons



            Seeking Alpha



            Thomson



            GE Finviz



            GE on Finviz







            share|improve this answer










            New contributor




            Emma is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
            Check out our Code of Conduct.









            share|improve this answer



            share|improve this answer








            edited 6 hours ago





















            New contributor




            Emma is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
            Check out our Code of Conduct.









            answered 7 hours ago









            EmmaEmma

            2048




            2048




            New contributor




            Emma is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
            Check out our Code of Conduct.





            New contributor





            Emma is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
            Check out our Code of Conduct.






            Emma is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
            Check out our Code of Conduct.








            • 1




              $begingroup$
              Can we discuss privately? Where have you got the photo from your answer?
              $endgroup$
              – fgauth
              7 hours ago
















            • 1




              $begingroup$
              Can we discuss privately? Where have you got the photo from your answer?
              $endgroup$
              – fgauth
              7 hours ago










            1




            1




            $begingroup$
            Can we discuss privately? Where have you got the photo from your answer?
            $endgroup$
            – fgauth
            7 hours ago






            $begingroup$
            Can we discuss privately? Where have you got the photo from your answer?
            $endgroup$
            – fgauth
            7 hours ago




















            draft saved

            draft discarded




















































            Thanks for contributing an answer to Quantitative Finance Stack Exchange!


            • Please be sure to answer the question. Provide details and share your research!

            But avoid …



            • Asking for help, clarification, or responding to other answers.

            • Making statements based on opinion; back them up with references or personal experience.


            Use MathJax to format equations. MathJax reference.


            To learn more, see our tips on writing great answers.




            draft saved


            draft discarded














            StackExchange.ready(
            function () {
            StackExchange.openid.initPostLogin('.new-post-login', 'https%3a%2f%2fquant.stackexchange.com%2fquestions%2f44146%2fhow-to-assess-the-susceptibility-of-a-u-s-company-to-go-bankrupt%23new-answer', 'question_page');
            }
            );

            Post as a guest















            Required, but never shown





















































            Required, but never shown














            Required, but never shown












            Required, but never shown







            Required, but never shown

































            Required, but never shown














            Required, but never shown












            Required, but never shown







            Required, but never shown







            -

            Popular posts from this blog

            Magento 2 controller redirect on button click in phtml file

            Image
            0 I want to redirect customer using controller when button is clicked in one of my phtml files. So far I got, controller: public function execute(){ return $this->addToCart(); } public function addToCart(){ // some logic $this->_redirect('checkout/cart/index'); } The above is working fine (redirecting) when you access the controller via URL (www.mydomain.com/batchorder/index/addtocart). And here is my .phtml file: $("#addToCart").click(function(){ let controllerUrl = "<?php echo $block-getUrl('batchorder/index/addtocart'); ?>" $.post(controllerUrl, { "products": JSON.stringify(sideCart.SideCartProducts) }) The post request returns my logic as it should, however, it is not redirecting. Anyone can help? ...
            Read more

            Polycentropodidae

            Image
            Polycentropodidae Plectrocnemia conspersa Siyentipiko nga pagklasipika Ginhadi-an: Animalia Phylum: Arthropoda Ubosphylum: Hexapoda Klase: Insecta Orden: Trichoptera Labawbanay: Hydropsychoidea Banay: Polycentropodidae Binomial nga ngaran Polycentropodidae An Polycentropodidae [1] in uska familia han Insecta. An Polycentropodidae in nahilalakip ha familia nga Hydropsychoidea, ordo nga Trichoptera, classis nga Insecta, punoan nga Arthropoda, ngan regnum nga Animalia. [1] An familia nga Polycentropodidae in naglalakip hin 660 ka mga species, sumala ha Catalogue of Life [1] . An kladograma hini sumala ha Catalogue of Life [1] : Hydropsychoidea   Polycentropodidae  Adectophylax Antillopsyche Cernotina Cyrnellus Cyrnodes Cyrnopsis Cyrnus Eodipseudopsis Eoneureclipsis Holocentropus Kambaitipsyche Neucentropus ...
            Read more